Tag Archives: Skilled worker

Actions Have Consequences

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It sounds really compassionate to insist that the minimum wage be a wage you can actually live on, but is that really the purpose of the minimum wage, and what are the consequences of raising the minimum wage? California just found out.

On Tuesday, The Washington Examiner reported:

California’s fast-food minimum wage hike has been in effect for just one month, and the consequences are proving to be fewer hours and potentially fewer jobs for workers.

Pollo West Corporation, the largest franchisee of El Pollo Loco restaurants in California, has said that its franchises went from profitable to losing money overnight when the fast-food wage hike went into effect. It also said that the franchises have reduced worker hours by 10%. Meanwhile, the restaurants had raised prices in February to prepare for the wage hike, leading to a 3% decline in business.

In total, fast food prices have gone up in California by 10% since September, a larger increase than in any other state. Restaurants have already passed those prices on to consumers, as was expected, and are cutting hours and adding kiosks. Fewer hours for employees means less money, fewer sales to consumers means less business, which means fewer hours for employees, and automated kiosks mean a reduced need for employees, which means fewer hours (or jobs) for employees.

For those of us who are mathematically challenged, if you work 30 hours at $15 an hour, you make $450. If your hours are cut back to 20 hours but you make $20 a hour, you only make $400. That is not an improvement.

The minimum wage was never intended to be a living wage. It was intended to be an way for unskilled workers to enter the workforce and learn good work habits–showing up on time, dressing appropriately, being nice to customers, etc. Ideally a minimum wage job provides an opportunity to learn skills that will enable a person to get a job that pays more than minimum wage. Somehow California has missed that concept.

This Is How Sleight Of Hand Works

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We have all heard that the border crisis is continuing because Congress and President Trump are not capable of working together to solve any problems. We have also heard that Republicans and Democrats are not capable of working together. Well, while the media was hyping Russia, Russia, Russia, those in Congress did pass a bill relating to immigration. It is bill that will hurt America’s high-skilled workers. The Democrats and the Chamber-of-Commerce Republicans (aka swamp dwellers) worked together to suspend the rules and pass the bill. Isn’t that special?

The Congressional website has the details (there is no direct link because the links expire):

H.R.1044 – Fairness for High-Skilled Immigrants Act of 2019

Passed House (07/10/2019)

Fairness for High-Skilled Immigrants Act of 2019

This bill increases the per-country cap on family-based immigrant visas from 7% of the total number of such visas available that year to 15%, and eliminates the 7% cap for employment-based immigrant visas. It also removes an offset that reduced the number of visas for individuals from China.

The bill also establishes transition rules for employment-based visas from FY2020-FY2022, by reserving a percentage of EB-2 (workers with advanced degrees or exceptional ability), EB-3 (skilled and other workers), and EB-5 (investors) visas for individuals not from the two countries with the largest number of recipients of such visas. Of the unreserved visas, not more than 85% shall be allotted to immigrants from any single country.

This is the timeline on the bill:

Date Chamber All Actions
07/11/2019 Senate Received in the Senate and Read twice and referred to the Committee on the Judiciary.
07/10/2019-4:58pm House Motion to reconsider laid on the table Agreed to without objection.
07/10/2019-4:58pm House On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 365 – 65 (Roll no. 437). (text: CR H5323-5324)
07/10/2019-4:48pm House Considered as unfinished business. (consideration: CR H5336)
07/10/2019-3:24pm House At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
07/10/2019-2:51pm House DEBATE – The House proceeded with forty minutes of debate on H.R. 1044.
07/10/2019-2:51pm House Considered under suspension of the rules. (consideration: CR H5323-5328)
07/10/2019-2:51pm House Ms. Lofgren moved to suspend the rules and pass the bill, as amended.
06/18/2019 House Motion to place bill on Consensus Calendar filed by Ms. Lofgren.
03/22/2019 House Referred to the Subcommittee on Immigration and Citizenship.
Action By: Committee on the Judiciary
02/07/2019 House Referred to the House Committee on the Judiciary.
02/07/2019 House Introduced in House

This is the vote:

Understand that the Chamber of Commerce supports many Republican candidates. Their members support lower wages because it keeps corporate expenses down. The Democrats like the bill because it increases chain migration and theoretically provides future Democrat voters. Republicans and Democrats can agree when it is to their benefit. Unfortunately this agreement works against working Americans.

All t his was going on while the media was screaming “Russia, Russia, Russia.”

 

From The Young Conservatives Website

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The following cartoon is from the Young Conservatives website:

branco min wage cartoon

The article below the cartoon states:

A survey of American economists found that 90 percent of them regarded minimum wage laws as increasing the rate of unemployment among low-skilled workers. Inexperience is often the problem. Only about two percent of Americans over the age of 24 earned the minimum wage.

Advocates of minimum wage laws usually base their support of such laws on their estimate of how much a worker “needs” in order to have “a living wage” — or on some other criterion that pays little or no attention to the worker’s skill level, experience or general productivity. So it is hardly surprising that minimum wage laws set wages that price many a young worker out of a job.

Support of an increase in the minimum wage is political–it is  not based on economic realities. Unions support it because it allows them to negotiate for higher wages. Eventually this cycle leads to inflation and hurts low-income wage earners the most.